Also, the current system I use for LTR won’t be sustainable as we continue to purchase.  

The first purchases are likely going to be California, Montana, and Texas.

Last year, I purchased a SFH under market at 7.65% interest rate and did some rehab to up the value.

I am assuming that even if you strucutred it with a higher purchase price (85% of value) and pre-paid rent it would potentially still be frowned upon.

Your 'cost' should include everything, from land purchase, soft costs, holding costs, and hard costs.

Our plan is to purchase again with a better mindset of turning that into a profitable rental.We have diligently completed all the necessary steps and are on the verge of signing a management agreement with a property manager.However, we are experiencing some doubts.  1.

Meeting its standards makes these loans eligible to be purchased by either Fannie Mae or Freddie Mac. 

Was that purchase money, rate and term refi, or cash out refi?

In that regard, I can guess estimate if they're selling 400K more (after holding for two years), with the kind of remodelling that they make ( lets say 150K), I guess they make 200K net profit.The software is good for "flipping intel" at the very least.I used it for the last three purchase that I had.

@Kaleb JohnsonRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?